Author Topic: $2700 refunded this morning, and I have no idea why  (Read 1274 times)

JJ-

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$2700 refunded this morning, and I have no idea why
« on: August 18, 2021, 08:47:59 AM »
I know we'll get a notice explaining it, though I'm going to be wondering about it until it shows up.

We e-filed and received our refund months ago. The only thing we were expecting was the refund on unemployment income. At our taxable income last year, I expected it to show up as ~1224 (12% of $10,200, total unemployment income of ~13k for 2020). Instead, we got $2700+interest today. Does anybody have a guess why we got this amount? Could this be a mistake/refund processed correction that's not the unemployment refigure. It seems too round of a number for it to be some sort of correction.

MFJ+2 kids <6, filled out stimulus payment info correctly with original tax return.

terran

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Re: $2700 refunded this morning, and I have no idea why
« Reply #1 on: August 18, 2021, 11:09:43 AM »
Could it be for any of the stimulus payments?

Paul der Krake

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Re: $2700 refunded this morning, and I have no idea why
« Reply #2 on: August 18, 2021, 11:15:45 AM »
The notice won't explain the math. Just "some laws changed, we calculated X, if you think it's wrong send mail to this address".

If you were on the ACA in 2020 some provisions changed around underpayment penalties, could this be it?
Any chance some of it could be from the new child tax credit that started last month?

JJ-

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Re: $2700 refunded this morning, and I have no idea why
« Reply #3 on: August 18, 2021, 11:56:48 AM »
Could it be for any of the stimulus payments?
No I'm pretty sure we calculated those correctly with tax return. We had a child born last year and claimed the credit during refund time for him. They got them right otherwise for 2 adults and 1 child throughout the year. I will go back and double check though.

The notice won't explain the math. Just "some laws changed, we calculated X, if you think it's wrong send mail to this address".

If you were on the ACA in 2020 some provisions changed around underpayment penalties, could this be it?
Any chance some of it could be from the new child tax credit that started last month?
Good to know on what to expect in the mailer.

We were not on ACA last year as I have had insurance through work. Good guess though.

The monthly payment for child tax credit posted $600 last month and $600 on 8/13.

I am completely baffled at the round-numberedness of this refund ($2700). I wish it were off by a penny or something. The account transcript doesn't give me any idea of what it is, just that it is a refund amount. Sounds like I need to go through our 2020 tax return.
« Last Edit: August 18, 2021, 12:20:45 PM by JJ- »

JJ-

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Re: $2700 refunded this morning, and I have no idea why
« Reply #4 on: August 18, 2021, 01:04:16 PM »
I know we'll get a notice explaining it, though I'm going to be wondering about it until it shows up.

We e-filed and received our refund months ago. The only thing we were expecting was the refund on unemployment income. At our taxable income last year, I expected it to show up as ~1224 $2244(12% 22% of $10,200, total unemployment income of ~$13k $11,640 for 2020). Instead, we got $2700+interest today. Does anybody have a guess why we got this amount? Could this be a mistake/refund processed correction that's not the unemployment refigure. It seems too round of a number for it to be some sort of correction.

MFJ+2 kids <6, filled out stimulus payment info correctly with original tax return.

Going back it looks like we made more in 2020 than I recalled, which puts us in the 22% bracket. (taxable income of 92k originally down to ~81k from the unemployment exclusion). I updated some numbers quoted in bold based on actuals. I also confirmed that we were correctly credited the $500 + $600 rebate credits for DS born last year.

Still the amount returned should be 22% on $10,200 $2244 and not $2700. Only one of us was on unemployment last year (and filed that way). My understanding was each unemployment collector would get a credit if household unemployment was >$10,200. Not MFJ households with unemployment income would get $10,200+$10,200 exclusion. So even if it was incorrectly calculated at $11,640*22%, I still end up with a total credit just $2,560.80 not $2700. That eliminates that possibility.

However, with it being so much closer to the actual expected amount rather than $1500 off, I'm going to turn my brain off on this and update if something else pops up here.
« Last Edit: August 18, 2021, 01:06:59 PM by JJ- »

jpdx

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Re: $2700 refunded this morning, and I have no idea why
« Reply #5 on: August 24, 2021, 01:54:14 AM »
The unemployment exclusion reduces your AGI, which means it can increase some of the tax credits you may have claimed. If you want to see what's going on under the hood, open up your tax software and manually reduce unemployment compensation by $10,200 and watch what happens with your credits.

JJ-

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Re: $2700 refunded this morning, and I have no idea why
« Reply #6 on: August 24, 2021, 10:19:16 AM »
The unemployment exclusion reduces your AGI, which means it can increase some of the tax credits you may have claimed. If you want to see what's going on under the hood, open up your tax software and manually reduce unemployment compensation by $10,200 and watch what happens with your credits.

Good idea. I'll give that a shot.

JJ-

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Re: $2700 refunded this morning, and I have no idea why
« Reply #7 on: August 28, 2021, 08:00:33 PM »
The unemployment exclusion reduces your AGI, which means it can increase some of the tax credits you may have claimed. If you want to see what's going on under the hood, open up your tax software and manually reduce unemployment compensation by $10,200 and watch what happens with your credits.

Good idea. I'll give that a shot.

I plugged the numbers in assuming a new return for 2020 and the difference was exactly $2700 in addl fed return with the unemployment exclusion. I didn't go through form by form to see where additional credits came from as I was just happy to see that it matched up.

Thanks for putting that to bed for me.